S.F. 293 Section 1. NEW SECTION . 261.117 Mental health professional 1 loan forgiveness program. 2 1. As used in this section, “underserved area” means a 3 geographical area designated as a mental health care health 4 professional shortage area by the department of public health. 5 2. A mental health professional loan forgiveness program 6 is established to be administered by the commission. A mental 7 health professional, as defined in section 228.1, is eligible 8 for the program if the mental health professional is a resident 9 of Iowa who is practicing in an underserved area. 10 3. Each applicant for loan forgiveness under this section 11 shall, in accordance with the rules of the commission, do the 12 following: 13 a. Complete and file an application for mental health 14 professional loan forgiveness. The applicant shall be 15 responsible for the prompt submission of any information 16 required by the commission. 17 b. Complete and return on a form approved by the commission 18 an affidavit of practice verifying that the applicant is a 19 mental health professional practicing in an underserved area. 20 3A. Notwithstanding subsection 3, paragraph “b” , an 21 individual who is a resident of Iowa, who has a degree from 22 an accredited postsecondary institution in a degree program 23 that will qualify the person to be licensed as a mental health 24 professional, as defined in section 228.1, upon completion 25 of a residency program, and who is accepted in an Iowa-based 26 residency program, is eligible to enter into a program 27 agreement with the commission. The program agreement shall 28 provide that in order to receive loan forgiveness under this 29 section, the individual shall agree to engage in full-time 30 practice as a mental health professional, within nine months of 31 completing the Iowa-based residency program, for a period of 32 five consecutive years in an underserved area. 33 4. a. A mental health professional is eligible for loan 34 forgiveness payments under this section for not more than five 35 -1- LSB 1473SV (2) 86 kh/sc 1/ 4

S.F. 293 consecutive years. 1 b. The annual amount of loan forgiveness awarded under 2 this section to a mental health professional who practices 3 in an underserved area in this state shall not exceed the 4 resident tuition rate established for institutions of higher 5 learning governed by the state board of regents for the first 6 year following the mental health professional’s graduation 7 from a graduate school, or twenty percent of the mental 8 health professional’s total federally guaranteed Stafford loan 9 amount under the federal family education loan program or the 10 federal direct loan program, including principal and interest, 11 whichever amount is less. 12 c. A mental health professional receiving loan forgiveness 13 payments under this section is required to file an application 14 annually and submit information as required by the commission 15 on the basis of which the applicant’s continued eligibility for 16 the loan forgiveness program will be evaluated and determined. 17 5. A mental health professional loan forgiveness fund is 18 created as a separate fund in the state treasury under the 19 control of the commission for deposit of moneys appropriated 20 to or received by the commission for use under the program. 21 Moneys credited to the fund are appropriated to the commission 22 for purposes of the mental health professional loan forgiveness 23 program. Notwithstanding section 8.33, moneys deposited in the 24 fund shall not revert to any fund of the state at the end of 25 any fiscal year but shall remain in the loan forgiveness fund 26 and be continuously available for loan forgiveness under the 27 program. Notwithstanding section 12C.7, subsection 2, interest 28 or earnings on moneys deposited in the fund shall be credited 29 to the fund. 30 6. The commission shall submit in a report to the general 31 assembly by January 1, annually, the number of mental health 32 professionals who received loan forgiveness payments pursuant 33 to this section, the underserved areas in which those mental 34 health professionals practice or practiced, the amount paid 35 -2- LSB 1473SV (2) 86 kh/sc 2/ 4

S.F. 293 to each mental health professional under this section, and 1 other information identified by the commission as indicators 2 of outcomes from the program. 3 7. The commission shall adopt rules pursuant to chapter 17A 4 to administer this section. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill establishes a mental health professional loan 9 forgiveness program under the administration of the college 10 student aid commission. Under the program, mental health 11 professionals who practice in underserved areas are eligible 12 for loan forgiveness payments for up to five years. 13 The bill defines “mental health professional” and 14 “underserved area” for purposes of the program. A mental 15 health professional either holds at least a master’s degree in 16 a mental health field, holds a current Iowa license, and has 17 at least two years of post-degree clinical experience or is a 18 licensed psychiatrist or psychologist, an advanced registered 19 nurse practitioner who holds a national certification in 20 psychiatric mental health care registered by the board 21 of nursing, or a physician assistant practicing under the 22 supervision of a psychiatrist. An underserved area is a 23 geographical area designated as a mental health professional 24 shortage area by the Iowa department of public health. 25 Applicants for loan forgiveness payments are required 26 to submit an application and an affidavit of practice to 27 the commission. A person who is not yet a mental health 28 professional, but who is a resident of Iowa, who has a degree 29 from an accredited postsecondary institution in a degree 30 program that will qualify the person to be licensed as a mental 31 health professional upon completion of a residency program, 32 and who is accepted in an Iowa-based residency program, is 33 also eligible for the program, but must enter into a program 34 agreement with the commission. Under the program agreement, 35 -3- LSB 1473SV (2) 86 kh/sc 3/ 4

S.F. 293 the individual agrees to engage in full-time practice as a 1 mental health professional, within nine months of completing 2 the Iowa-based residency program, for a period of five 3 consecutive years in an underserved area. 4 The annual amount of loan forgiveness awarded to an 5 individual under the program shall not exceed the resident 6 tuition rate established for regents universities for the first 7 year following the mental health professional’s graduation 8 from a graduate school, or 20 percent of the mental health 9 professional’s total federally guaranteed Stafford loan 10 amount under the federal family education loan program or the 11 federal direct loan program, including principal and interest, 12 whichever amount is less. 13 The bill creates a mental health professional loan 14 forgiveness fund in the state treasury under the control of the 15 commission for deposit of moneys appropriated to or received by 16 the commission for use under the program. Moneys credited to 17 the fund are appropriated to the commission for purposes of the 18 program and do not revert to any fund of the state at the end of 19 any fiscal year, and interest or earnings on moneys deposited 20 in the fund shall be credited to the fund. 21 The commission shall submit a report to the general assembly 22 by January 1, annually, detailing the number of mental health 23 professionals who received loan forgiveness payments and the 24 amount paid to each recipient, the underserved areas in which 25 they practice or practiced, and other information identified by 26 the commission as indicators of outcomes from the program. 27 -4- LSB 1473SV (2) 86 kh/sc 4/ 4